National Mortgage Loan Originator (MLO) Test With Uniform State Content (UST)

Which of the following scenarios best illustrates an MLO breaching their duty of care to a borrower?

Failing to place a borrower into the lowest-cost loan program for which they qualify because a higher-cost loan offers the MLO a larger commission. Providing the borrower with a list of three approved appraisers to choose from. Disclosing the MLO's NMLS unique identifier on all application forms and advertisements. Refusing to process a loan application for an individual who is on public assistance, citing insufficient income.

Correct Answer:

Failing to place a borrower into the lowest-cost loan program for which they qualify because a higher-cost loan offers the MLO a larger commission.

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